sunset clause

Dictionary of Banking Terms for: sunset clause
sunset clause

language in a state law stating the law expires at a specified date, unless renewed by act of the state legislature. Legislation in several states raising or abolishing interest rate ceilings on credit card finance charges contains such clauses.

Dictionary of Real Estate Terms for: sunset clause
sunset clause

a provision in a sales contract that sets a date after which the agreement is no longer in effect.

Example: Since the housing market was strong and the Andersons were attracting a number of prospective buyers for their house, they insisted on a sunset clause in the contract. This provision would allow them to offer the house to another buyer should the closing be delayed for any reason.

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